All Forum Posts by: Brad Hammond

In my state (Oregon), you need to get the seller's permission to change lenders or the type of loan after mutual acceptance.  If they are counting on a quick close, they probably wouldn't allow you to change into conventional and do a 30-day close.  

1. I think it depends on the property. I would put as little down as you can but still cashflow with interest rates so low. PMI can be a cashflow killer but you could always refinance out into conventional once you get more equity. And yes, FHA down payments are for up to 4 units.

Try looking into an opportunity zone.  There are funds as well so they wouldn't need to purchase a specific property.  

Hey @Austin Lynk, overall it sounds like a great plan.  I did see a couple of issues that I would think about. 

1. If you are going to get an owner-occupied multi-family loan with a conventional loan, the down payment will be 15% for a duplex and 20% for a 3-4 unit. You would need to go with an FHA loan to get the lower down payment.

2. It will probably take you a couple of years to BRRRR a multi-family (depending on your landlord/tenant laws) because you need to wait for their leases to end so you can get into each unit and turn them. This might not be a good option for hard money.

I would try and do a BRRRR first if that is an option so you can get your money back and invest it into something else. When looking at a multi-family, the lender is going to be looking at the property's financials as well as yours so your DTI won't matter as much as it will on your primary residence.

If you are going to occupy it within 30 days of closing, you should only need to put 5%-ish down.  If this is going to be a second home, I believe the minimum is 10%.  

I always advise my clients to take it at closing.  That way you will have cash in hand to make the repair or account for any unexpected items that pop up.  With interest rates being so low right now, I think it makes sense to finance as much as you can.  Taking the deduction is not going to reduce your payments very much at all.  

@Sharon Beatty, There are properties on the market that cash flow but they might be in rougher areas.  One way I look at prices right now is that rents are down about 5%-7% this year around Portland but cap rates haven't changed.  That being said, properties are on a 5%-7% discount this year.  Between that and very low-interest rates, I think this is a great time to buy.  

Hi @Wilson Stark, welcome to BiggerPockets!  You just missed my Zoom Master Class on buy & hold and house hacking in Portland but there are other meetups.  I would connect with Investor Lab and check out their meetings.  There is a membership fee but it is totally worth it.

Hey @Mike Toole, the trick to finding ARV and rent prices are finding good comps. The comps for ARV are going to be a little trickier. You will need to find sold properties based on the location and condition that it is going to be. The closer in distance, and more similar they are the better the comp. It is going to be the same thing with finding the rental rates. I would look on Facebook Marketplace for those but it depends on the type of rental it is.

Hi @Laura Keels, the only way you would be able to keep a portion of their security deposit is if there was damage to the property.  If there is no damage, you should send them a lease violation and a fine if that is stated in the lease.  However, if they are leaving next week anyhow, that might fall on deaf ears.